Homework Help is Here – Start Your Trial Now!
Business
Accounting
What is the amount of cash received by A on February 28, 2021? P75,000 P25,000 P50,000 None

What is the amount of cash received by A on February 28, 2021? P75,000 P25,000 P50,000 None

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

What is the amount of cash received by A on February 28, 2021?

P75,000
P25,000
P50,000
None

On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 is presented as follows: Total Liabilities 1,400,000 A, Capital В, Саpital C, Capital Cash P1,600,000 P2,000,000 100,000 500,000 400,000 Noncash asset On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2021, the following transactions occured: Noncash assets with a book value P1,000,000 were sold at a gain of P100,000. • Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incured for the month of February, 2021. 20% of the liabilities to third persons were settled. Available cash were distributed to the partners. As of February 28, 2021, the following transactions occured: Remaining noncash assets were sold at aloss of P100,000. The final liquidation expenses for the month of February amounted to P100,000. The remaining liabilities to third persons were settled at a compromise amount of P1,500,000. Remaining cash were finally distributed to the partners.
Transcribed Image Text:On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 is presented as follows: Total Liabilities 1,400,000 A, Capital В, Саpital C, Capital Cash P1,600,000 P2,000,000 100,000 500,000 400,000 Noncash asset On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2021, the following transactions occured: Noncash assets with a book value P1,000,000 were sold at a gain of P100,000. • Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incured for the month of February, 2021. 20% of the liabilities to third persons were settled. Available cash were distributed to the partners. As of February 28, 2021, the following transactions occured: Remaining noncash assets were sold at aloss of P100,000. The final liquidation expenses for the month of February amounted to P100,000. The remaining liabilities to third persons were settled at a compromise amount of P1,500,000. Remaining cash were finally distributed to the partners.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS